Describe how coordinated trading by investors

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According to market efficiency stock prices are almost always correct. Using recent events in the stock markets (explosion in the stock prices and subsequent declines of "meme" stocks such as GameStop, AMC, Blackberry, and others) please describe how coordinated trading by investors acting not on information, but on irrational biases and limits to short selling can lead to significant short-term departures of stock prices from fundamental values. Please comment why some of these stocks (AMC, GME) continue to trade at historically high levels 8 months since the original spike despite major decline in revenues and profitability.

Reference no: EM133068905

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